Why trade CFDS

Ability to Acquire or Sell Options

Many traders prefer CFD trading for its adoptability and potential profit gains.

Trading CFDs (contracts for difference) provides investors with the opportunity to acquire or sell options as well as to earn funds in a falling market without the necessity to invest considerable amounts of capital. Nevertheless, investors often use CFD trading for speculative purposes. It is possible to use CFDs to speculate on the future change of market prices regardless of the rising or falling of the product price. If you feel that the price will fall, it is better to sell the CFD. It will allow you to enjoy the advantages of falling prices if you are right.

This is a good example of a CFD trade:

If you feel that the UK 100 is going to rise in value, you can request the price by using your online trading account via the LVMexchange MT4 trading platform. It will allow you to see the spread, for example, 5293.5-5294.5 points. After that you can buy at 5294.5 for a certain amount (the minimum amount in LVMexchange is 1 CFD). This is equal to £1 per point movement of the index. If the price moves up to 5394.5-5395.5 and you manage to sell at 5394.5, you can realize a 100 point profit - (the price you sell for 5394.5 minus the price you purchased for 5294.5). If you have placed a 1 CFD trade, your profit can be £100 (£1 multiplied by 100). However, don’t forget that if the market falls in value, it may result in a loss that can be calculated according to the following formula: opening price - closing price x CFD amount.

Leverage

CFDs are known as leveraged products. They allow investors to trade by only paying a fraction of the total contract value. By trading a leveraged product, it is possible to potentially increase the return on investment. However, greater potential returns may also mean greater risk. The higher leverage can lead to losses that can exceed the initial deposit.

Wide Range of Markets

Investors can make use of CFDs to get instant exposure to basic world markets including Europe, the UK, Asia, and the US. Consider our range of CFD trading markets.

Reasons to Trade CFDs with LVMexchange

Commissions and Competitive Spreads

LVMexchange can offer its customers high quality service, the lowest commissions, and the tightest dealing spreads on CFD FX in the market. We strive to excel as CFD brokers, and propose the best CFD platform related to online trading.

Low-Gain Requirements

CFD traders can also benefit from the low-gain requirements in the industry. Customers only have to deposit a small percentage of the general notional value of the trade when they want to open new positions.

24-Hour Support

LVMexchange realizes the customer needs to have constant access to their accounts and trade from any place and time they want, especially in the case market prices are moving swiftly. That’s why we are ready to provide our customers with unlimited access to their accounts 24 hours a day, 5 days a week via the mt4 software available for download.

Excellent Customer Service

When you open a CFD trading account with the foreign exchange brokers of LVMexchange, you will enjoy the highest quality of service provided by a team of international professionals. We can communicate with our customers in over 15 languages. Besides, we do our best to increase your CFD and your personal experience related to forex trading. Download one of the most efficient CFD trading platforms now, and try your own CFD trading strategies. We propose Oil and indices CFDs.

Regulated and Authorized Broker

We store your funds in separate accounts. You get special warranties covered by the Compensation Scheme Related to Financial Services.

High Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by LVMexchange you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. LVMexchange provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. LVMexchange recommends you seek advice from a separate financial advisor.

Login

We use cookies to save your preferences and provide you with a more localized experience. If you accept our use of cookies you can continue browsing.
Please see our Cookie Policy for full details and how you can opt-out.